Market Talk
Jitters about the sustainability of the AI trade, coupled with disagreements over potential tolls in the Strait of Hormuz after the 60-day ceasefire, evidently weighed on market sentiment. It seems that sticking points in both market perceptions and peace settlements hit many technology-related stocks.
Also, the newer IPOs CBRS and SPCX took notable hits, as was hinted here could happen.
Yesterday felt similar to an earlier session this month on June 6, when nearly 30 days of steady gains in technology and semiconductor stocks were smacked down in just one lousy day. We recall noting, "Poof."
Yesterday there were also reports that memory sales by South Korean companies could be facing challenges. As a result, all eyes now turn to the quarterly report from Micron (MU), due after today's closing bell. Investors will be watching closely to see whether management and analysts can quell the jitters or refuel bullishness in the tech trade.
For now, it remains to be seen whether the recent jitters are merely a shakeout or a sign that the rally is due for more of a correction.
Not all stocks got whipsawed lower.
Stock Talk
On days when one sector gets slammed, it can be interesting to note a few stocks that held up and moved higher:
- Kimberly-Clark (KMB)
- Walmart (WMT)
- Altria Group (MO)
This is not to say that one day of jitters in the technology sector will develop into a broader selling trend. However, diversification can sometimes help provide balance.
In another sector, the miners, it appears they may be stuck in a transitory limbo phase. Earlier, we determined that oil and gas stocks did not seem like particularly tradeable themes for many retail traders. The miners are beginning to feel somewhat similar.
Some Stocks We Are Watching
Technology
GFS
INTC
Spec Technology
NVTS
QBTS
Defensive
KMB
WMT
MO
It is difficult to say whether any should be considered overweight positions at current levels. It is also possible that cash, or "dry powder," may find better buying opportunities ahead. However, we continue to use the words, "maybe some."
Investors holding overweight positions in stocks that are looking overbought might wish to consider moving some shares to the sidelines and rebuilding some dry powder.
Spec Biotech
ONCY remains on the watch list just under $1. Patent extensions and clinical progress in advanced cancers suggest there is more coming to this story. With the ongoing CRC trial, recent patent extensions, and encouraging clinical signals across multiple advanced cancers, some are beginning to ponder M&A with Big Pharma.
As always, investors should size positions accordingly and stay aware.
Things change fast. Stay watchful.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
ALL in my humble opinion, scroll down and read more. This site does NOT make Buy / Sell recommendations.
